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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G EN T O F T H E U N IT E D ST A TES

Dallas, Texas, April 30,1954

PRELIMINARY ANNOUNCEMENT
CASH AND EXCHANGE OFFERINGS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
There is quoted below a press statement issued today by the Treasury Department in regard to
cash and exchange olferings:
“Secretary of the Treasury Humphrey announced today the following offerings of Treasury
securities:
CASH OFFERING

“On Tuesday, May 4, the books will be opened for cash subscriptions to an issue of $2,000,000,000, or thereabouts, of 4-year and 9 months’ V/% percent Treasury Notes to be dated May
17, 1954, and to mature February 15, 1959.
“The books for cash subscriptions to this offering will be open only one day. Cash subscrip­
tions addressed to a Federal Reserve Bank or Branch or the Treasury Department placed in the
mail before midnight. May 4, will be considered as having been entered before the close of the
subscription books.
“Subscriptions may be paid for by credit in Treasury Tax and Loan Accounts. Subscriptions
from commercial banks, which for this purpose are defined as banks accq^iting demand deposits,
for their own account, will be received without deposit, but will be restricted in each case to an
amount not exceeding one-half the combined capital, surplus, and undivided profits of the sub­
scribing bank. A payment of 10 percent of the amount of notes subscribed for, not subject to
withdrawal until after allotment, must be made on all other subscriptions. All subscriptions for
amounts up to and including $10,000 will be allotted in full, and larger subscriptions will be
allotted on an equal percentage basis, but not less than $10,000 on any one subscription.
“Commercial banks and other lenders are requested to refrain from making unsecured
loans or loans collateralized in whole or in part by the notes subscribed for, to cover the 10 per­
cent deposits required to be paid when subscriptions are entered. A certification by the sub­
scribing bank that no such loan has been made will be required on each subscription entered by
it for account of its customers. A certification that the bank has no beneficial interest in its
customers’ subscriptions, and that no customers have any beneficial interest in the bank’s own
subscription, will also be required.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

EXCHANGE OFFERING

‘‘Subscription books will be opened on May 5 for the following:
(A) A 1 ^ percent Certificate of Indebtedness dated May 17, 1954, to mature May 17,
1955 to be offered in exchange for:
1. $1,743,115,500 of outstanding 2 percent bonds of 1952-54, maturing June 15, 1954
2. $373,161,500 of outstanding 2l^ percent Bonds of 1952-55 called for redemption on
June 15, 1954.
3. $311,551,150 of outstanding 2l^ percent bonds of 1954-56 called for redemption on
June 15, 1954.
(B) The lYs percent Certificate of Indebtedness dated May 17, 1954, to mature May 17,
1955 or the 1% percent Treasury Note, dated May 17, 1954, to mature February 15, 1959, to
to be issued in exchange for:
$4,858,173,000 of outstanding 2% percent Certificates of Indebtedness, Series B of 1954,
maturing June 1, 1954.
“Accrued interest on the securities surrendered in exchange will be credited to their
respective maturity or call dates, and accrued interest on the new securities from May 17, 1954,
will be charged to those same dates.
“The exchange subscription books for both issues, which will open on Wednesday, May 5,
will close at the close of business Friday, May 7. Any exchange subscription addressed to a
Federal Reserve Bank or Branch or the Treasury Department placed in the mail before midnight
May 7, will be considered as timely.”
The official circulars and subscription forms for the cash and exchange offerings will be mailed to
reach all banking institutions by Tuesday, May 4. However, if the circulars and forms are not received
in sufficient time, subscriptions may be entered by mail, telegraph dr telephone, subject to confirmation
with an official application blank. This applies particularly to cash subscriptions, as the books for those
subscriptions will be open only one day. May 4.
Yours very truly.
WATROUS H. IRONS
President


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102